A wide array of guest speakers at the MTD executive board meeting voiced support, enthusiasm and appreciation for the American maritime industry while not glossing over the many challenges faced by its different components.Offering perspectives from various segments of the industry were (in order of appearance) Thomas Barrett, deputy secretary of the U.S. Department of Transportation; U.S. Maritime Administrator Sean Connaughton; General Ken Wykle (USA ret.), president, National Defense Transportation Association; Fred Harris, president, National Steel and Shipbuilding Company (NASSCO); Thomas Crowley, CEO, Crowley Maritime Corporation; and Admiral Thad Allen, commandant, U.S. Coast Guard.
Barrett reaffirmed the Department of Transportation’s belief that a strong U.S. Merchant Marine is essential to the defense and economic development of the nation.
“We are committed to supporting American-flag shipping…. If you are successful, America will be successful,” he stated.
Referring to President Bush’s strong support for the Jones Act, Barrett outlined the DOT’s vision for the future and expressed his own admiration for the men and women of the U.S. Merchant Marine. Noting that he had served 35 years in the U.S. Coast Guard, Barrett added, “You can’t spend as long a time in the Coast Guard as I did without building an enduring and very deep respect for American mariners. I see it (the contributions they make to American society) every day.”
According to Barrett, America’s defense and economic health depends on its maritime industry. The nation’s network of waterways moves 2.2 billion tons of domestic and foreign cargo. Ninety-five percent of our international trade moves by water. International trade will double within the next 20 years.
Barrett said the DOT believes America’s economy depends on enhancing systems performance, particularly the maritime element. “I don’t think that the economy can continue to grow without making seaways more efficient,” he observed.
Connaughton noted that the maritime industry has made remarkable progress over the past year and gave strong support to core maritime programs moving forward. Those initiatives and regulations include the Jones Act, cargo preference, the Maritime Security Program, port modernization, shipbuilding, maritime training and LNG development.
He expressed optimism about the marine highway initiative, also known as short sea shipping. The energy bill signed late last year contains provisions establishing a formal marine highway program within the federal government.
“Even though this is something that we’ve been pushing, now, finally having statutory recognition about the fact that the coastwise laws, coastwise vessels and trades are something that’s vital to our transportation system” is key, Connaughton said.
He added, “There was one sentence in that law that really is important for us as we look forward to a new transportation reauthorization bill and funding. For the first time we see in legislation that they look for the waterways as part of our national service transportation system. That opens up an enormous amount of possibilities…. We’re very, very close to several new operations and I think that we’re going to be able to make this all happen and see projects, see (new) jobs and see congestion being relieved because of this new marine highway program.”
Wykle also emphasized the abundant possibilities for greater utilization of domestic waterborne transportation. He cited several studies that show the United States is facing a transportation crisis and urged the federal government and the private sector to enter into an historic partnership to better use America’s abundant water resources.
The NDTA’s stated mission is “to foster a strong and an efficient global transportation and distribution system.” For years, it has been arguing that the federal government has been promoting air, rail and highways, but not water-based transportation.
According to Wykle, there have been two major transportation revolutions since the founding of the nation—the development of transcontinental railways in the 19th century and the rise of the interstate highway system, which was devised in the 1950s.
However, the highway system is “old and decaying. Demand is increasing.” Moreover, investment is not keeping pace.
Wykle believes that America needs a third transportation revolution. It needs to make greater use of its oceans, lakes and inland waterways. Unlike highways and rails, waterways do not have to be built; they already exist. He said that waterborne transportation is inherently more efficient, cost-effective and environmentally friendly than most other modes of transportation.
The most serious challenge in achieving this third revolution is getting out the word, he added. Government officials, labor unions, grassroots organizations and maritime companies need to educate the American public about what’s at stake, Wykle said.
“We need to create a (new) generation of U.S.-manned coastal ships,” he stated. “We need to reestablish the United States as a competitive ship builder and create thousands of new family-wage jobs.”
Harris is a former licensed mariner who sailed with a number of SIU members. He noted that NASSCO’s parent company, General Dynamics, has “tens of thousands of union workers.”
The San Diego-based shipyard, which employs 4,700 people, carries great relevance for the SIU. NASSCO currently is constructing T-AKE ships for the U.S. Navy (vessels that are being crewed up by members of the union’s Government Services Division) as well as commercial tankers for Seafarers-contracted U.S. Shipping. Previously, the yard built vessels for SIU-contracted TOTE and Alaska Tanker Company, respectively. Years ago, it also built the CIVMAR-crewed hospital ships USNS Mercy and USNS Comfort.
Harris said the T-AKE vessels are “great ships for the U.S. government. They are multi-capable ships. They carry fuel oil, ammunition and bombs, dry cargo, frozen stores…. We have 11 under contract.”
He pointed out, however, that two more of those vessels recently were removed from the federal budget. “We need to work hard – and I would ask for you to work with us – to make sure these ships are put back in” the budget, he told the board.
Harris praised the shipyard workers, noting they are doing a great job with quality and turnaround time. “I’m proud of them and this is the best shipyard I’ve ever worked in,” he said. “I can’t tell you enough about the people in the shipyard and what they’ve contributed – not only with the work they do, but the spirit and the culture that they bring.”
He needs more of them, though. Harris said that he anticipates growth at the yard and wants to hire hundreds more employees.
He concluded by vowing to work with Congress “for as long as I’m able, to support the U.S. maritime industry – both in supporting U.S. seafarers at sea and in building U.S. ships.”
Crowley described the excellent cooperation that exists not only within his company but among its contracted unions, including the SIU. He gave special credit to MTD and SIU President Michael Sacco, calling him a mentor “and even more importantly, demonstrating unparalleled leadership in our industry with a passion that’s matched by no one.”
He added, “Our longstanding relationships with labor have evolved into strategic partnerships based on mutual understanding and respect. We’ve seen how, working together, we can accomplish much more than working alone or against each other. We are all part of the Crowley team.”
Crowley said the company continues its unwavering commitment to safety while also contributing to the renewal and growth of the Jones Act fleet. In the last decade, they’ve built 26 manned and 12 unmanned vessels. Currently under contract for construction are 22 additional vessels (11 manned, 11 unmanned).
However, he also voiced concern about ensuring adequate shipboard manpower in the years ahead. He discussed the company’s wide-ranging recruiting efforts and complimented the unlicensed apprentice program run by the SIU-affiliated Paul Hall Center for Maritime Training and Education.
He said that dwindling entry-level positions are taking a toll on the industry. “We need to work with our union partners to develop flexible ways to expand this capacity and pipeline…. I think it’s critical that we reduce barriers to entry. We need to improve and modernize the U.S. Coast Guard’s licensing requirements.”
Allen addressed those requirements along with maritime security and the myriad challenges it presents. He said he is an agent of change within the agency and noted he and other Coast Guard leaders are taking an honest look at how to improve all facets of the operation.
“We know we’re getting better. We know we’re not where we need to be,” Allen said. “You have my personal assurance that we will attend to this and make it better, and make it the class act that we want to provide you and that you deserve.
“Unless we can change to become a more flexible and agile organization, we’re going to risk something that we don’t want to have happen, and that’s the great good will in this country for the Coast Guard.”
The commandant said the agency is working with port captains regarding the Transportation Worker Identification Credential (TWIC) program. He mentioned an upcoming meeting with the port captains and declared, “Sooner or later, we have to come back and tell the industry, are we on track to meet the date, and are we prepared to do something about the date if we are not on track?”
Allen also discussed what he called an “archaic rulemaking process” that affects the industry; he’s got a task force looking into possible improvements.
He said he plans to continue dealing with all segments of the industry in a very open manner.
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